Precious Metals Warrants Index

What is REALLY happening in the precious metals sector? You'll be very surprised!

Market analysts, investment newsletter writers and financial planners are
always commenting on how well the precious metals mining sector is doing, which
specific mining company stocks show better than average potential, how well
the HUI or XAU indices are performing, etc but they are not telling you the
whole story. There is much more happening than such assessments would suggest
and you are going to very surprised by what the analysis below reveals.

Like the broad market DOW, S&P 500, S&P/TSX etc indices, there are
a number of precious metals (gold or otherwise) mining indices that dice and
splice the components of the precious metals mining sector to arrive at a wide
variety of insights. Not just the 2 or 3 that you might be aware of but as
many as 42 in all (see a complete list below).

Only 3 companies; Goldcorp, Kinross Gold and Meridian Gold are included in
all 3 indices. Anglogold, Agnico Eagle Mines and Pan American Silver Corp.
are unique to the XAU; Helca Mining and Golden Star Resources are unique to
the HUI.

But what about those other indices? Here they all are in order of performance
during 2005:

Rank

INDEX NAME

2005 Incr.

1.

Precious Metals Warrants Index (PMWI) (Composite)

51.4%

2.

DJ US General Mining Index

46.0%

3.

S&P/TSX Capped Diversified Metals and Mining Index

45.2%

4.

CBOE Gold Stock Index

44.6%

5.

FTSE Gold Stocks Index - Africa

42.5%

6.

DJ US Mining Index

41.9%

7.

FTSE Gold Mines Index - Australasia

39.9%

8.

Philadelphia Gold and Silver Index (XAU)

37.0%

9.

Barron’s Gold Mining Index

36.2%

10.

DJ Gold Mining Micro Sector Index

33.3%

11.

FTSE Gold Mines Index - America

31.5%

12.

Amex Gold Miners Index

29.1%

13.

Amex Gold BUGS Index (HUI)

28.6%

14.

Dow Jones Precious Metals Index

28.3%

15.

Global Gold Index

28.2%

16.

Shultz Gold Stocks Index

27.8%

17.

ISE Gold Index

27.3%

18.

S&P/TSX Gold Index (SPTGD)

25.8%

19.

Globe Precious Metals Peer Index

23.3%

20.

iUnits Gold Sector Index

22.8%

21.

DJ - AIG Precious Metals Spot Index

21.3%

22.

DJ - AIG Precious Metals Total Return Index

20.4%

23.

DJ US Gold Mining Index

19.7%

24.

Goldman Sachs Commodity (Precious Metals) Index

19.5%

25.

Goldcolony Index of Junior Gold Stocks

18.9%

26.

Gold TRAKRS Index

18.2%

27.

iShares COMEX Gold Trust Index

17.6%

28.

Australian Gold Emerging Producers Index

16.8%

29.

DJ - AIG Precious Metals Index

16.6%

30.

Canadian Gold Producers Index

13.4%

31.

Australian Gold Producers Index

7.4%

32.

Australian Gold Juniors Index

5.9%

33.

DJ US Platinum & Precious Metals Index

2.8%

34.

CBOE Power Packs Gold Index (Started July/05)

N/A

35.

IBD Gold Stock Index

N/A

36.

Junior Gold Stock Index (J. Taylor)

N/A

37.

TSI Gold Stock Index

N/A

38.

South African Gold Producers Index

N/A

39.

Financial Sense Junior Gold Index (Composite)

N/A

40.

Financial Sense Junior Gold Index (Junior Producer Cos)

N/A

41.

Financial Sense Junior Gold Index (Junior Development Cos)

N/A

42.

Financial Sense Junior Gold Index (Junior Exploration Cos)

N/A

Footnote: The Precious Metals Warrants Index is a Price Weighted
Index and includes all warrants which were trading for at least 12 months as
of 12/31/05. Calculations reviewed by Brenda Roxanne Samaniego, CPA.

Never heard of most of them? True, most are rather obscure, but one of them
is going to change the way you look at investing in the precious metals mining
sector from now on. It is #1 on the list above - the proprietary Precious Metals
Warrants Index (Composite). More than 50 companies in the precious metals mining
business offer warrants which are trading in the United States and Canada (in
addition to their common stock) and they are now regularly tracked, analyzed
and published by PreciousMetalsWarrants.com.

Yes, 2005 was a good year for precious metals with rhodium up 125.6%, uranium
76.8%, palladium 38.2%, silver 29.5%, ruthenium 27.9%, gold 18.2%, iridium
14.7%, and platinum 12.1% while molybdenum was down 11.7%. It was even better
for the companies who mined the various minerals with their stocks up in excess
of 40% on average depending on the index used. But the best way to have played
the precious metals market in 2005 was to have been invested in a complete
basket of precious metals warrants which realized an outstanding 51.4% increase.

Dudley Pierce Baker is the founder and editor of Common Stock Warrants and
its predecessor, Precious Metals Warrants and a 1967 graduate of St. Mary’s
University in San Antonio, Texas with a major in accounting.

Disclaimer/Disclosure Statement: CommonStockWarrants.com is not an
investment advisor and any reference to specific securities does not constitute
a recommendation thereof. The opinions expressed herein are the express personal
opinions of Dudley Baker. Neither the information, nor the opinions expressed
should be construed as a solicitation to buy any securities mentioned in this
Service. Examples given are only intended to make investors aware of the potential
rewards of investing in Warrants. Investors are recommended to obtain the advice
of a qualified investment advisor before entering into any transactions involving
stocks or Warrants.